Nigeria has successfully put a stop to the enforcement of the $11 billion arbitration award in favour of P&ID after an arduous legal battle lasting over five years.
The ruling, delivered via email by Robin Knowles, the judge of the Commercial Courts of England and Wales, hinged on Nigeria’s claim that the award was procured through fraudulent means.
With this ruling, Judge Knowles faces the task of deciding on one of three options: returning the award to the tribunal for reconsideration, setting the award aside, in whole or in part, or declaring the award to be of no effect, in whole or in part.
The concerned parties will have the opportunity to present their arguments regarding the next course of action on a date to be arranged.
The roots of this legal dispute can be traced back to a private arbitration tribunal’s decision on January 31, 2017, ordering Nigeria to pay $6.6 billion to P&ID, with interest accruing from March 20, 2013, fixed at seven percent, leading to a substantial accumulation that pushed the potential payment to over $11 billion prior to the final verdict.
Judge Knowles, in his ruling, emphasized that the awards were obtained through fraudulent means and were contrary to public policy. He stressed the seriousness of the case and the importance of upholding the rule of law in such matters.
Nigeria had appealed against the enforcement of the arbitration award, and the UK commercial court granted relief in September 2020, redirecting the case to the high court for a full trial.
The legal proceedings, spanning two months from January to March 2023, saw the Nigerian legal team argue that substantial evidence pointed to the contract and arbitration award being the result of “an audacious fraud on Nigeria.”
They sought to set aside the award, citing convictions related to corruption and money laundering as evidence of extensive misconduct.
